Dubai Officials’ Confidence-Building Britain, US Trip

December 17, 2009 by · Leave a Comment 

By Amran Abocar and Steve Slater

2009-12-16T115052Z_26914839_GM1E5CG1J5P01_RTRMADP_3_DUBAI

An investor looks at stock information at the Dubai Financial Market December 16, 2009.   REUTERS/Mosab Omar

DUBAI/LONDON (Reuters) – Two top Dubai officials are visiting Britain and the United States over the coming days to rebuild investor confidence after neighboring Abu Dhabi helped bail out the emirate’s flagship company.

A source close to the government said the officials were already in London and would be in New York on Thursday and Washington on Friday to meet financial and political leaders.

“This is the next step in Dubai’s commitment to greater transparency,” said the source.

“They will spend the next few days meeting financial, economic and political leaders in London, New York and Washington, D.C. to discuss the actions taken this week to stabilize global markets.”

The emirate, famous for its man-made islands in the shape of palms and for other infrastructure projects, rocked global markets on November 25 with a request for a standstill agreement on $26 billion of debt linked to Dubai World and its two main property units, Nakheel and Limitless World.

The roadshow is being led by Sheikh Ahmed bin Saeed al-Maktoum, chairman of Dubai’s Supreme Fiscal Committee and the uncle of Dubai’s ruler, Sheikh Mohammed bin Rashid al-Maktoum. Until recently he was best known as leader of the Emirates airline, but his public profile has risen since the debt crisis erupted.

Also on the trip is Mohammed al-Shaibani, deputy chairman of the same committee. He heads Sheikh Mohammed’s court and is chief executive of the Investment Corporation Dubai, which oversees the government’s investment portfolio.

‘Comprehensive Solution’

Earlier this week, Abu Dhabi, which produces 90 percent of the United Arab Emirates’ oil exports, provided $10 billion of financial aid to its fellow UAE member to meet the debt obligations of Dubai World until the end of April and to stave off a bond default by Nakheel.

Some $4.1 billion of the rescue funding helped Nakheel repay an Islamic bond, or sukuk, on Tuesday, a day after its due date.

The Abu Dhabi lifeline came in the form of bonds, at similar terms to a $10 billion bond issue to the UAE central bank in February, which carried a coupon of 4 percent per annum for the five-year, fixed-term issue.

Dubai also announced this week it would implement immediately an insolvency law modeled on U.S. and British practices in the event Dubai World needs to seek protection from its creditors. Meanwhile, Dubai’s ruler ordered the creation of a tribunal, headed by three international judges, to oversee any disputes between Dubai World and its creditors.

“They want to explain what happened this week,” said another source close to the government. “It’s very much the transparency message and to discuss the fact they presented a comprehensive solution.”

With the bond repayment out of the way, Dubai World must now agree a standstill with creditors, allowing it time to undergo a massive restructuring. It is slated to meet representatives from some 90 banks in Dubai on Monday.

(Editing by Andrew Callus and Kenneth Barry)

11-52

Mideast Firms Ramp Up in Iraq, Western Firms Trail

December 3, 2009 by · Leave a Comment 

By Deepa Babington

2009-11-27T155315Z_1505821627_GM1E5BR1TSO01_RTRMADP_3_IRAQ-OIL

Workers dig a new oil well at South Rumaila oil field, in southern Iraq November 26, 2009. Britain’s BP and China’s CNPC have clinched a final agreement to operate Iraq’s biggest field, Rumaila, and groups led by Italy’s Eni and U.S. major Exxon Mobil have secured initial deals over Zubair and West Qurna Phase One. Picture taken November 26, 2009. 

REUTERS/Atef Hassan

BAGHDAD, Nov 30 (Reuters) – While Western firms notch up high-profile energy deals in Iraq, smaller regional firms from Iran to Turkey are quietly building a broader Iraqi presence by pumping billions of dollars into housing and other projects.

Pledges by companies to invest in Iraq are suddenly taking off as violence falls sharply and the government seeks help to rebuild after years of war, sanctions and bloodshed.

Investors have announced $156.7 billion worth of projects in Iraq this year, not all of which are likely to bear fruit, Dunia Frontier Consultants said in a report.
Much of the spotlight has fallen on mega-deals by Big Oil firms like Exxon Mobil <XOM.N> and BP <BP.L> for oilfields, but high security costs — 26 percent of total costs according to one estimate — have deterred Westerners from other sectors.

Meanwhile, Iranian investors have been piling into the Shi’ite Muslim tourism business, Turkish companies have cornered the market in the Kurdish north and Gulf companies, some run by Iraqi expatriates, are nailing construction deals.

Middle East firms are perhaps more accustomed to operating in difficult environments, and have an easier time navigating Iraqi red tape and corruption, analysts said.

“It is easier for Gulf and regional companies to operate here because they know the mentality here,” said Munther al Fattal, director of investment promotion at the U.S. agency for international development’s Tijara project.

“Security has greatly improved but there still are a lot of impediments such as bureaucracy and lack of transparency.”

While most investment projects announced in Iraq never seem to get off the ground, the growing business clout of regional firms is increasingly obvious.

Turkish firms have been investing in projects in the north and plan an $8 billion mixed development project in the south, while Iranian firms have catered to tourism supporting Shi’ite pilgrimages to the holy cities of Najaf and Kerbala as well as industrial projects in Basra in the south, Dunia says.

Lebanese investors have opened up a bank and plan to set up a $500 million residential city and dairy factory in Diwaniya, while investors from the United Arab Emirates have been eyeing residential complexes and infrastructure projects.

US is Small Fry Outside Energy

The United Arab Emirates has emerged as the top foreign investor in Iraq this year with pledges of $37.7 billion, followed by South Korea and the United States, Dunia said.

But South Korea owes its number two spot almost entirely to a planned $20 billion investment in a new industrial city in Anbar province’s untapped gas fields, which appears to be little more than a pipedream or at the very least, aspirational.

The U.S. position in the rankings is almost entirely due to Exxon’s $25 billion contract for the West Qurna oilfield, which has yet to be ratified by the Iraqi cabinet. U.S. investment into Iraq accounts for less than 1 percent of the total if government contracts and oil are excluded.

A look at smaller deals offers a more revealing picture of the players with a wider presence in Iraq.

Lebanon tops the list of investment deals below $1 billion, followed by South Korea, Iran, the UAE and Turkey, Dunia said.

Once again, South Korea’s position in the list is misleading, exaggerated due to a single energy project.

“Once the major energy deals are stripped away, it is largely regional players that dominate,” the Dunia report said.

Some analysts say the dominance of Middle East players is likely to continue.

“Most of the investment will come from Gulf States and Jordan — with a significant contribution from Iran,” said Gavin Jones of Upper Quartile, an Edinburgh-based research firm.

He said repatriation of wealth by Iraqis living in Jordan or the Gulf could account for a sizeable chunk.

(Editing by Michael Christie; Editing by Victoria Main) ((deepa.babington@thomsonreuters.com, Baghdad newsroom, +964 7901 917 023, deepa.babington.reuters.com@reuters.net))

11-50

Mall Rats

November 12, 2009 by · Leave a Comment 

By Sumayyah Meehan, Muslim Media News Service (MMNS) Middle East Correspondent

wallgarden The Middle East is world-renowned for hosting some of the tallest buildings in the world. However, the region is also home to some of the largest and most luxurious shopping malls in the world. As a result of almost year-round scorching temperatures and excess oil wealth that flows out of banks just as quickly as the bubbling crude can be exhumed from the earth, shopping is the new national pastime for most Middle East nations.

It’s primarily the elite and wealthy denizens of the Gulf region, in countries like Kuwait, Dubai and Oman, that can afford to shop til they drop in the most prestigious designer boutiques and stores from the global arena. And since the wealthy clearly outnumber the less fortunate in the Gulf region, malls go up at a record pace, each bearing a signature style to lure customers and ring up sales.

Built across 12 million square feet, the largest mall in the Middle East can be found in the United Arab Emirates.  With more than 1,200 stores ready and open for business the Dubai Mall attracts approximately 750,000 visitors each week. The mall is part of the Burj Dubai Project, which is the tallest building in the world. Some of the features that make the mall unique include the biggest gold market in the world with more than 220 jewelry stores. It also has more than 70 stores that carry exclusive haute couture designer clothing. And as for entertainment, the mall is home to the first SEGA indoor theme park in the Middle East and a 22-screen movie theater.

However, the undisputed crown of the region’s largest mall is set to topple by next year’s end. Just a hop, skip and a jump away from Dubai, the leading contender for the most lavish and gargantuan mall in the Middle East can be found in Kuwait. ‘The Avenues’ mall lives up to its name. This monster of capitalism and sheer consumerism is as big as it gets with several hundred stores and plans to house a European-styled ‘Grand Mall’. The mall has already opened despite the fact that only two out of the proposed three phases have been complete. Security is also very tight as the mall features its very own police department with a force of 350 ‘mall cops’ that work around the clock to ensure public safety. The command center of the police department receives live feed from over 350 security cameras situated all over the interior and exterior of the mall.

Size, however, does not always matter. There seems to be a mall on every corner in the biggest cities of the Gulf region with most of the smaller malls mimicking each other and offering little more than a rehashing of the one prior. However, there is one mall that while small is standing out as a veritable gem in the crown of all things commercial. The ‘360 Mall’ of Kuwait was built in a perfect circle and is an architectural feat of sheer minimalism and art. The most attractive features of this mall are not a giant store or an enormous entertainment center. What makes the 360 Mall unique is that it houses two very unique and permanent art installations. The first is the largest vertical garden in the world, which was grown by French botanist Patric Blanc and is the size of four tennis courts in length. The second are two glass sculptures, made to look like the moon and the sun, by renowned American glass artist Dale Chihuly.

11-47

Skilled Labor?

October 22, 2009 by · 1 Comment 

By Sumayyah Meehan, Muslim Media News Service Middle East correspondent (MMNS)

hand-holding-diploma The economic boom and unprecedented growth of the Middle East over the past several years has made it a lucrative venue for employment seekers. Barely scathed by the global economic turndown, that has brought the rest of the world to its’ knees, most Middle Eastern countries continue to ride a wave of economic independence and expansion.

As a result of the sheer speed of growth, an increased demand for skilled workers has evolved. Doctors, nurses, teachers, IT professionals, architects and engineers are just a few of the careers that are in high demand in the Middle East region. However, not everyone seeking a job has the proper credentials and, unfortunately, many people who have already acquired high paying jobs in specialized fields have done so with fake university degrees.

Within the past few months, the extensive reliance of unqualified persons utilizing the services of fake degree mills has come to light. The Spokesman newspaper in Washington State recently published a list of more than 10,000 names of people who have already purchased fake university degrees or were in the process of doing so. The majority of persons on the list were Arab Americans who now face possible criminal charges from the US Department of Justice.

What is most surprising is that the majority of the wealthier Middle Eastern countries like Kuwait, the UAE and Bahrain offer free university education for their nationals. So, it is not necessarily a matter of someone being denied access to higher education but actually it is often about someone lacking the initiative to attend university for the required number of years to earn full accreditation.

With the problem in the international spotlight, some Middle Eastern countries are taking swift action to punish anyone attempting to utilize a bogus university degree to get employment. The United Arab Emirates has launched a stellar campaign to crackdown on anyone currently employed or seeking employment by presenting a fake university degree. Violators face a lifetime ban from working or even entering the UAE and face up to 24 years in prison. In the State of Kuwait, the Public prosecution has received several complaints from employers regarding job seekers presenting phony academic certificates. Most recently, this past week, 19 potential teachers were ordered held for prosecution as their educational certification was proven to be counterfeit by the Ministry of Education.

Obtaining a fake university degree is not difficult. A short trip to Southeast Asia or even Hungary can help someone achieve a PHD or CPA without spending a lot of time or money in school and for a fraction of the cost of a long stint in college. However, the odds are against such persons once they are on the job and cannot fulfill the work that their forged certification claims that they can do. Such was the case recently in Kuwait when a man went to the Ministry of Education seeking a job as a teacher. His forged university degree came from Hungary. However, he could not speak Hungarian or even English and simply claimed that he studied with the aid of a translator.

Unscrupulous degree dealers can be found all over the Gulf region offering a variety of degrees for under $1000 and in less than a month. A local reporter in the Kingdom of Saudi Arabia recently exposed one such degree dealer. The dealer advertised on the Internet and communicated exclusively by email or mobile phones to elude detection from Saudi authorities. He promised the reporter “you name it and we provide it”. The degrees for sale bore the name of “Buxton University” in the UK and could be made to order immediately.

The real losers in this scam are the people who hold authentic university certification and now find themselves having to prove that their degree is worth the paper that it is printed on. Degree cheaters have forced most Mideast governments to cast out an overly wide net to root degree violators out, unfortunately authentic degree holders are getting caught up in it as well.

11-44

Turkey FM Urges Iranians to Accept Election

June 27, 2009 by · Leave a Comment 

Hurriyet

hurriyet
Turkish Foreign Minister Ahmet Davutoğlu

ANKARA – Breaking a week’s silence on the deadly rift in Iran following the recent controversial events, Turkey has contradicted the Western position and advised Iranian people not to overshadow “the dynamic and well-attended” political elections.

FM urges Iranians to accept election “We believe that the problems in Iran will be solved via its inner mechanisms, with the best possible result. In this context, we truly hope that the dynamic and well-attended political election will not be shadowed by the recent developments, and we send our best regards to the people of Iran with the strong conviction that they will reach the best conclusion in a short time,” Foreign Minister Ahmet Davutoğlu told reporters Monday during a meeting with visiting United Arab Emirates Foreign Minister Sheikh Abdallah bin Zayid al-Nuhayyan.  

Turkey has become one of the first countries to congratulate President Mahmoud Ahmadinejad’s victory in the general elections, where he defeated reformist candidate Mir Hossein Mousavi, without considering the opposition’s assertions of fraud in the vote counting. It has been tight-lipped since the beginning of the demonstrations in Iran, where at least 10 protesters have died. Davutoğlu, known as a Middle East expert, in his first statement late Sunday, said he discussed regional developments with his Azerbaijani counterpart at a surprise meeting in Istanbul.

“Iran is of utmost importance to us. It is one of our most important neighbors with which we share common history. We believe that Iran will solve its problems within itself in the framework of healthy consultation and one-on-one negotiations. Iran’s stability is vital for the entire region’s stability. Turkey will respect all decisions made in this respect,” he said.

Davutoğlu did not touch on the fact that the police were using disproportionate force against protesters and the rights of assembly and to demonstrate were disregarded by Ahmadinejad’s regime. The foreign minister’s statement reveals that Turkey’s sole interest is in maintaining regional stability through favoring the status quo in Iran, according to diplomatic sources. For many, Turkey’s current foreign policy does not prefer a change of regime in Iran for strategic purposes.

According to Semih İdiz, a columnist for daily Milliyet, President Abdullah Gül’s “reflexive” congratulation call to Ahmadinejad just after the elections has raised many questions.

“Those who are skeptics are not only the Westerners. The diplomats of countries who are closely observing the recent developments with concern, like Saudi Arabia, Jordan or Egypt, are also curious about the same things,” he wrote in his column on Monday.

Grasping developments

“By this approach Turkey has been doomed to a position where it hasn’t been able to grasp the recent developments in Iran. Our ignorance of this neighboring country is clearly seen when we observe the fact that most of our people choose to state the most common and simple argument, yet once again, that suggests that the United States and EU are involved in the recent developments in Iran.”

11-27

Middle East Hit by U.S. Financial Crisis

October 16, 2008 by · Leave a Comment 

Courtesy New America Media, Shane Bauer

Editor’s Note: Even oil-rich Arab countries, which until recently were smug about being insulated from the financial debacle on Wall Street, are starting to worry. Analysts are predicting that they are sure to increase regulations and start pulling their economies away from the United States. NAM contributor Shane Bauer is a journalist and photographer based in the Middle East.

Stock traders in the Middle East

SANA’A, Yemen–While Washington was hashing out the terms of its largest financial bailout in history, Arab bankers were saying everything in the Middle East was as good as ever.

A full-page ad in one Middle Eastern magazine advertised a proposed business park called Falcon City, another fantasy land to add to the skyscrapers and glitter of oil-rich Dubai. Office buildings were shaped to resemble the Eiffel Tower, the Great Wall of China, the Pyramids of Egypt, and the Taj Mahal.

“As a residential or business address, each wonder is a totally amazing investment,” the caption read.

A few days later, the same newsstands spelled dread. Images of fear-stricken men in white robes and kafiyyas, their eyes fixed on strings of red numbers, splashed the front pages. Headlines announced that the Middle East’s markets were crashing, and columnists spit fire, calling on the Arab world to free itself “from the shackles of American imperialism.”

The degree to which Arab investors, which have some $800 billion invested internationally, will rein in their international investments will likely depend on how heavily they are impacted by the crisis. But analysts say that at the very least, Arab countries are sure to increase regulations and start pulling their economies away from the United States.

“U.S. influence has long been waning, both in its capacity to inspire and to intimidate,” says David Levy, senior fellow and director of the Middle East Initiative at the Washington, D.C., think tank the New America Foundation. “The region has been increasingly looking elsewhere for investments and markets. The crisis on Wall Street will only hasten that process.”

2008-10-12T102958Z_01_DUB09_RTRMDNP_3_DFM-LIMITDOWN But Arab analysts say the United States was becoming increasingly unattractive for investment well before the financial crisis hit. Washington had rejected several investment attempts in recent years by Arab companies on the basis that they were, well, Arab.

The last rejection came when some Gulf companies showed interest in investing nearly $20 billion to help save Citi Group and Merrill Lynch when they were initially threatened with bankruptcy. The deal was stopped in Congress when opponents said an increase in Arab investment in the United States would present a national security problem.

As Arab stock markets fall for their third day since reopening after a one-week post-Ramadan holiday, one thing is clear: those with the most open markets and the strongest ties to the U.S. economy are being hit the hardest.

In the past three days alone, banks in the Persian Gulf have lost about $150 billion. On Tuesday, the Tadawul All-Shares Index, home to the Arab world’s biggest market, finished at its lowest close in four years.

Countries that last week were saying that their economies were “insulated” from international financial disasters are now bailing out their banks. The central bank of the United Arab Emirates pumped $17.5 billion into its banks this week and said it is ready to give more if needed.

Jan Randolph, an economic analyst at Global Insight, says that “Arab investors and banks are going to start looking locally for investments.”

The president of the Union of Arab Banks, Adnan Yusif, has announced that there needs to be an increase in regional investment, and economists have been calling for a meeting of financial ministers and policy makers to come up with a regionwide plan to deal with the crisis.

But inter-Arab economic cooperation might not be easy. The Middle East is home to some of the world’s most closed economies, like Syria, as well as countries whose names are virtually synonymous with unfettered growth, like the United Arab Emirates.

Antagonisms over competing economic ideologies run deep in the Arab world, and the current crisis seems to be reigniting debates about how much regional economies should be bound to the global economy.

“If this crisis does send real shockwaves through the region, and you start seeing that economies more closed to the world are more protected, people might start seeing open economies as a double-edged sword,” says David Levy.

Masa’ad al-Kurdi of the Saudi-owned Al-Majella magazine writes that neo-liberal globalization is to blame for the crisis. “The developing world’s economies are dependent on the U.S., the world’s largest importer, to buy their exports,” he argues. As the dollar weakens, “developing countries are going to pay the most,” writes Al-Kurdi, who concludes that “the United States of America is driving the world into the abyss.”

10-43

Many Arabs Favor Nuclear Iran

April 24, 2006 by · Leave a Comment 

Many Arabs Favor Nuclear Iran
By Jonathan Wright
CAIRO (Reuters) – The United States found little support in the Arab world when it invaded Iraq in 2003.
In a military confrontation with Tehran over Iran’s nuclear program, it should not expect any more.
Some Arabs, mainly outside the Gulf, are positively enthusiastic about Iran’s program, even if it acquires nuclear weapons, if only because it would be a poke in the eye or a counterweight to Israel and the United States.
Others, especially in countries closest to Iran, are wary of any threat to the status quo and the instability it might bring.
Most in the Arab world see the U.S. and European campaign against Iran as hypocritical, while Israel refuses to allow international nuclear inspections and is thought to have some 200 nuclear warheads.
“I want the whole region free of all nuclear weapons but if the West continues its double-standard approach on this issue then Iran has the right (to have them),” said Abdel-Rahman Za’za’, a 29-year-old Lebanese engineer.
“This could provide some balance against Israel and help the Palestinians in their negotiations. We have to take our rights because they are not going to be given to us,” he added.
The Muslim Brotherhood, Egypt’s largest opposition group, said this week it saw no harm in Iran developing nuclear arms.
“That would create a kind of equilibrium between the two sides — the Arab and Islamic side on one side and Israel on the other,” said deputy Brotherhood leader Mohamed Habib.
Arab League chief Amr Moussa said on Tuesday policies toward nuclear programs in the region needed thorough review.
“These policies which are based on double standards will blow up and escalate this issue and this escalation will not include only Iran and Israel,” he said. The Arab League represents 22 Arab governments, from Morocco to the Gulf.
Iran says it has no intention of making nuclear bombs and wants enriched uranium only to generate electricity. The United States says it does not believe it.
Analysts said they detected a surprising level of sympathy and support for Iran in the region.
WOUNDED DIGNITY
“It’s amazing how encouraging people are of the whole thing. Some think the Iranians are on the way to acquiring it (nuclear weapons capability) and are quite excited,” said Hesham Kassem, editor of the independent Cairo newspaper Al Masry Al Youm.
“There doesn’t seem to be any awareness that it might be a calamity,” added Kassem, who said he personally was afraid of an arms race bringing in Saudi Arabia, Egypt and Turkey.
Mohamed el-Sayed Said, deputy director of the Ahram Center for Political and Strategic Studies, a Cairo think tank, said: “People are very very warm about it (Iran’s nuclear program).”
“Anyone who challenges the United States will find a great deal of support. That’s a very profitable enterprise in public opinion terms,” he added.
“Even if it takes an arms race, people don’t mind. What we have here is wounded dignity and revulsion about the lack of fairness and double standards.”
Most Arab governments have called for a peaceful solution to the confrontation with Iran, in the hope that diplomacy will enable it to develop nuclear energy under U.N. supervision.
If they speak about nuclear weapons, they say the whole Middle East should be nuclear-free, implicitly including Israel. U.S. officials say they can only deal with Israel’s nuclear activities after a comprehensive Middle East peace.
Analysts in the Gulf raised special concerns. “Gulf states are legitimately concerned about Iran joining the nuclear club,” said Abdel-Khaleq Abdullah, a professor of political science in the United Arab Emirates.
“The possibility of a fourth Gulf war is just beyond our ability to manage. We don’t want it. It will just make life miserable and hell,” he added.
Saudi analyst Dawoud al-Sharayan said an Iranian nuclear bomb could give the United States a pretext to maintain its military forces in the Gulf and add to the tension.
Saudi Arabia would then have the right to think about having its own nuclear weapon, he added. –
(Additional reporting by Mohammed Abbas in Cairo, Alaa Shahine in Beirut, Miral Fahmy in Dubai and Andrew Hammond in Saudi Arabia)

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